What is typically required when a transaction is downgraded?

When a transaction is downgraded, it indicates that the transaction did not meet the criteria set forth by the card networks for the best processing rates. This typically means that the processor needs to review the transaction against the specific card company guidelines to determine why it was downgraded and what criteria were not met. Understanding these criteria helps businesses ensure they are adhering to best practices in processing transactions, potentially resolving any issues and minimizing costs in the future.

The other options focus on different aspects of transaction processing. Automatic approval from a financial institution is not necessarily linked to downgrades, and immediate customer notification might be relevant in specific contexts but is not a general requirement for all downgrades. Reprocessing the transaction is not a standard requirement; rather, the review against the criteria is fundamental to understanding and addressing the downgrade appropriately.